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I always advisesoftware startups to file patents to protect their “secret sauce” from competitors, and to increase their valuation. This patent holding company has charged infringement and demanded royalties from every app developer for the iPhone and Android, for a feature most agree has been in apps for many years.
For a software startup, a patent can be the intellectual property providing the key competitive advantage, or it can be an expensive non-defensible bureaucratic nightmare -- or both. Some argue to simply eliminate softwarepatents, while others put their hopes in U.S. There is no such thing as a world-wide patent.
Yet, despite his exceptional courtroom theatrics, you would be foolhardy to hire good old Johnnie to review your software cross-licensing agreement. Your lawyer is a trusted advisor, but in the end, you run your business, your lawyer does not. It is surprising how often entrepreneurs forget this simple fact. They make mistakes.
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